The government recently announced the successful restructuring of $14.2 billion in international sovereign bonds, encompassing $12.55 billion in principal and $1.7 billion in unpaid interest. This milestone has allowed Sri Lanka to reclaim credibility in international credit ratings, shedding the stigma of being a bankrupt nation.
While some members of the NPP-led government have attempted to take credit for this achievement, Minister of Labor and Deputy Minister of Economic Development, Professor Anil Jayantha Fernando, offered a different narrative. Speaking at a press conference, he revealed that the groundwork for this restructuring was largely completed under the leadership of former President Ranil Wickremesinghe, long before the NPP government assumed power.
“By mid-October, the Ranil administration had completed 99% of the necessary agreements for foreign debt restructuring,” said Prof. Fernando. “The remaining work was procedural and involved submitting the budget plan to secure the fourth tranche of IMF funds and final approval.”
In an ironic twist, Prof. Fernando pointed out that the NPP government, which came to power promising sweeping changes to the IMF agreement, has largely adopted the same economic recovery roadmap initiated by Ranil. This includes maintaining the PAYE tax threshold at Rs. 150,000 instead of the promised Rs. 200,000.
“The current government’s decision to adhere to the same agreements, starting from their initial discussion with the IMF in October, shows that they are walking down the same path paved by Ranil,” he added.
The professor likened the attempts of certain government members to claim credit for economic recovery to “writing the birth certificates of Ranil’s children”—a vivid metaphor highlighting the continuity of policies under a new banner.
This statement raises questions about the NPP government’s claims of economic transformation and underscores the enduring influence of the previous administration’s fiscal strategies.
